Minister of Finance, Economic Planning and Development Joseph Mwanamvekha has said the the Bretton Woods institution has agreed with government to have a roadmap for the budgetary support for the 2019/20 National Budget.
Mwanamvekha, who is scheduled to present his 2019/20 budget statement to Parliament next Monday, said after World Bank country director for Malawi, Tanzania, Burundi and Somalia Bella Bird met President Peter Mutharika and other government officials at Sanjika Palace in Blantyre on Wednesday.
“One of the issues we have agreed is to have a roadmap. Once we have finished that, they have assured us that they will give us budget support,” he said.
Mwanamvekha said to a larger extent, the World Bank wants Treasury to pay a closer look at the financial governance which includes prudence in procurement management.
World Bank country director also commented on the roadmap with Capital Hil , saying providing budget support to the Malawi Government will depend on key policies and frameworks critical for promoting inclusive growth.
“Whether the reforms are on strengthening public finance management, strengthening procurement and putting in place key policies and frameworks, one needs to promote growth. That is when we look at the kind of budget support instrument that Malawi needs, and we are always open to discussion on that. So, let’s see what the future hold,” said Bird.
World Bank continue withholding about K60 billion ($80 million) in budget support to Malawi.
During the 2018/19 financial year, the World Bank withheld its K60 billion budgetary support due to failure by Cabinet to discuss proposed reforms for State produce trader, the Agricultural Development and Marketing Corporation (Admarc).
Due to the non-disbursement of the World Bank’s budget support, Treasury was forced to trim allocations to some ministries, departments and agencies (MDAs) in the national budget during the Mid-Year Budget Review in February.